The won-dollar exchange rate against the U.S. dollar closed at 1,529.7 won on the 4th, up 13.3 won from the previous trading day. It was the highest closing price since Mar. 31 (1,530.1 won).
From the 15th to the day, the won-dollar exchange rate stayed above 1,500 won for 13 consecutive trading days on a closing basis. It surpassed the 11 consecutive trading days recorded from Feb. 24 to Mar. 10, 2009, during the global financial crisis, setting a new record.
That day, the won-dollar exchange rate rose to 1,530.8 won immediately after opening at 1,530 won. For the first time in 17 years and three months since Mar. 10, 2009 (1,554 won), it crossed 1,530 won intraday. It then fell to 1,520 won at 9:14 a.m., immediately after Vice Premier and Minister of Economy and Finance Koo Yun-cheol said, "We will take necessary measures immediately against excessive one-sided moves," as a verbal intervention. However, it rebounded and closed higher.
One reason the won-dollar exchange rate has been soaring day after day is cited as net selling of domestic stocks by foreign investors. When foreigners sell domestic stocks and convert the proceeds into dollars, dollar demand expands and the won-dollar exchange rate tends to rise.
Foreign investors made a net sale of 6.5 trillion won on the 2nd and a further 6.9 trillion won that day. The scale of foreign net selling stood at 43 trillion won in March, 5 trillion won in April, and 44 trillion won in May.